Prepare the Statemant of Coet of Goods Manutactured and Income statemant with th
ID: 2331829 • Letter: P
Question
Prepare the Statemant of Coet of Goods Manutactured and Income statemant with the Cost of Goods sold Preduced 2500 chairs Sell for $3 per chair Company Name Statemant of Cost of Goode Manufactured For Lest Year Beg FG is 100 chairs Ending FG 50 chairs Purchase of Mstorials $1,000 Beg. Material lew-$200 Ending Materisis In$100 DL $2,400 Indirect Labor 3250 Rent on Factory 3500 Dep. On Factory equipment $50 Utities for factory $200 Salary of sales Supervisor $150 Commission of Salespersons $5 General Administration Exp -$15 Beg WP $600 Ending WIP $700 Beg F.G. $176 Part 2 Average cost of One Unit Ending F.G.-$88Explanation / Answer
Company Name Company Name Statement of cost of Goods Manufactured Income Statement For the Year For the Year Direct Materials Consumed Sales $7,650.00 Beginning Material Inventory $200.00 Less : Cost of goods sold $4,488.00 Add : Purchases of Materials $1,000.00 Gross Margin $3,162.00 Less : Ending Material Inventory $100.00 Less : Selling and administrative exp. Direct Materials Consumed $1,100.00 Salary of sales supervisor $150.00 Direct Labour $2,400.00 Commission of sales person $50.00 Factory Overheads $1,000.00 General Admin exp. $15.00 Cost of Manufacturing for the year $4,500.00 Total $215.00 Add : Beginning WIP $600.00 Net Operating Income $2,947.00 Less : Ending WIP $700.00 Cost of goods Manufactured $4,400.00 Average cost of one unit = Cost of goods sold / No.of units sold Average cost of one unit = $4488 / 2550 units = $1.76 Working Factory overheads Indirect labor $250.00 Rent on Factory $500.00 Dep.on Factory Equipment $50.00 Utilities for Factory $200.00 Total Factory Overheads $1,000.00 Cost of goods sold Cost of goods manufactured $4,400.00 Add : Beginning FG $176.00 Less : Ending FG $88.00 Cost of goods sold $4,488.00